Updated Mar. 6, 2013 at 7:48 a.m.

Premium Lock As stock rises, IBM moving hundreds of jobs south to Mexico

Published: 2013-03-06 07:34:00
Updated: 2013-03-06 07:48:37

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IBM layoffs   IBM layoffs

Big Blue has made its corporate strategy well known: Drive down U.S. headcount and shift jobs to lower-cost countries as part of a plan to increase share value. As the Dow Jones industrial average hits a record high with IBM helping drive it there, Big Blue discloses it's moving U.S. manufacturing jobs south of the border....

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This is just bad news all the way around. also how much of this is about unions moving ou of the US means no unions and of course cheaper labor cost over all. Also the tax regulation and regulations in general both Federal and State make large corporations like IBM want to pull the plug on business in the US.
They are worshiping at the First Church of Shareholder Value. Nothing else matters with corporate America, while customers and employees come last. Rinse and repeat.

Mr. Haywood is correct - the underlying problem(s) must be fixed in order to break the cycle.
This is really not news, nor is it peculiar to IBM. So long as stock price is the single most important thing to businesses, of course management is going to do whatever will raise the stock price. People do what they are incented to do ... common sense. To get management to do something else requires that they have incentive to do it. None of us like to do what hurts us and very few of us are willing to take a hit in salary for doing something for the greater good of employees. When was the last time any of us volunteered to take a cut in pay to help out our employer (except for Tom Brady)? The problem is that stock price rules; until we find a way to fix that problem, the current behavior will never stop. We can all claim all the moral high ground we want, but we have to find a way to fix the underlying problem, not just the symptom. Oh, and for the record, although I am retired now, I was one of the unlucky ones who received a layoff notice 5 years ago.
GM was the first to cross into Mexico after NAFTA was signed, we bailed them out not long ago. But I never hear about the government getting paid back completely from GM yet.

IBM has rapidly declined as a company to work for, happened the minute the 'cookie' management took over (Gerstner). That began back in the 80's and hasn't looked back.
IBM has made it very clear that their goal is to send all jobs out of the US. The biggest problem for investors is that as their stock price goes up, their client satisfaction is going down but is being ignored by management. It's just a matter of time before a major failure created by lost cost workers sends the price on a tumble.
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